IEA predicts pick-up in global oil demand

The International Energy Agency (IEA) has kept its overall forecast for global oil demand growth for 2012 unchanged, predicting demand would rise by 800,000 barrels a day (0.9 per cent) to 90m b/d, with bigger increases in demand towards the end of the year driven primarily by developing countries such as China. Oil prices are currently trading at near 3 month lows due in part to increased production from OPEC nations.

However, the Agency has warned that “The path of market fundamentals for the rest of the year remains highly uncertain and geopolitical risks will likely continue to keep prices high”.